1. Thailand – Pacific Island Countries Forum (TPIF) Dr. Wimonkan Kosumas August 9, 2014 The Sukosol, Bangkok, Thailand

3. Constitution of enterprises by size 0.1 % 0.9 % 5 - 10 % 20 % 65 - 75 % Corporate and multinationals Large enterprises Medium enterprises Small enterprises Micro enterprises Source: IFC, 2009. Note: Percentage represent the number of companies. SMEs

4. Typology of SMEs by market and technology Cottage Enterprises Domestic Market – oriented Enterprises Supporting Enterprises Export – oriented Enterprises Low Tech High Tech Domestic / Local Market Export Source: Uchikawa and Keola, 2009. SMEs

5. Simplified SME life cycle Profit Loss Years Start-up Pick-up Growth Maturity Decline Exit Grow to large firm Note: The arrows indicate that different types of support are needed at the different life stages. SMEs

6. Why SMEs are important? SMEs are “Backbone” of the economy.  Create jobs and employment  Supplier of large firm  Diversify economy  Income distribution  Providing low-price products for the underprivileged  Innovation SMEs

7. Entrepreneurial activity in selected Asia-Pacific countries Nascent entrepreneurs hip rate New business ownership rate Early-stage entrepreneurial activity (TEA) Factor - driven economies Bangladesh7.1 12.8 Iran (Islamic Republic of) 10.83.914.5 Pakistan7.51.79.1 Average (unweighted)94.813.4 Efficiency – driven economies China10.114.224.0 Malaysia2.5 4.9 Russian Federation2.42.34.6 Thailand8.312.219.5 Turkey6.36.011.9 Average (unweighted)8.45.914.1

8. Nascent entrepreneurs hip rate New business ownership rate Early-stage entrepreneurial activity (TEA) Innovation - driven economies Australia6.04.710.5 Japan3.32.05.2 Republic of Korea2.95.17.8 Singapore3.82.86.6 Taiwan Province of China 3.64.47.9 Average (unweighted)4.03.06.9 Entrepreneurial activity in selected Asia- Pacific countries (Cont.) Source: GEM, 2012.

9. How SME fits into global supply chains: Source: UNIDO, 2001. Fourth tier Supplier (SME) Fourth tier Supplier (SME) Third tier Supplier (SME) Third tier Supplier (SME) Third tier Supplier (large firm) Second tier Supplier (SME) Second tier Supplier (large firm) First tier Supplier (large firm, perhaps TNC) First tier Supplier (large firm) Original equipment manufacturer (large firm, perhaps TNC) SMEs

10. SMEs and The Changing World Changing Factors

11. SMEs and The Changing World SMEs Issue:

12. Type of SME internationalization Internationaliz ed firms Born Global Foreign suppliers Foreign subsidiaries Joint-Research Joint-Marketing FDI Export Born Joint-Venture Consultancy Services Lab + Testing Legal Firms Software

13. SME Internationalization International Business Culture Foreign Partners Export Market Investment Technology Joint Venture Foreign Direct Investment Technology Transfer Reverse Engineering Website / E-mail International Customer Relations Trade Fair Participation Oversea Sale Representative Office Consultancy International Association Membership SMEs Internationalization Structure

14. Number of SMEs Number of Activities Overall image of SMEs Internationalization Type A Domestic SMEs Type B Go-global SMEs International Standard Management Overseas Representative Office Export Learning and Understanding International Business Culture Difficulty of Activities Investment Abroad Comply to International Standards and Practices Foreigner Business Partners - Joint Venture - Import Technologies - Employ Foreign Experts and/or Workers International / Regional Supply Chain management - Sourcing raw materials from local resources - Produce goods / services to be used as parts / components in oversea parent company

15. Source: EIU Study 2012 SMEs in Global

17. Agriculture Raw Materials Organic Products Green and Clean Processed Food Certified and Standard Guaranteed Products Processed Food Ready to eat Part & Component Production Assembly Reverse Engineering Innovative R&D - High Technology Gadget - High Technology Equipment Electronic s Oil Vegetable Oil Raw Materials Vegetable oils Oil for secondary industry Cosmetics / Pharmaceutica ls Chemical [Plastic] Tourist and Related Industry Tourist Guide / Sevounir / Restaurant Tour Package / Rental Services Halal Tourism / Performing Arts Environmental Tour Health Care Hospital / Clinic / Medical Tourism / Medical Hub Medical Devices Herb / Spa SME Accelerates Promotion Plan for Value Chain Raw Material / Plastic Packaging Industry New Synthetic Material / Nano-polymer

19. Access to Information and Advisory Services for SMEs SME Service Center Network (Thailand) Naresuan University Khon Kaen University Khon Kaen University, Nong Khai Province Campus Nakorn Panom University Ubon Ratchathani University Ubon Ratchathani University, Mukdahan Province Campus Surin Rajabhat University Nakhon Sri Thammarat Rajabhat University Burapa University Kanjanaburi Rajabhat University Prince of Songkhla University Service Center for Lower North- Eastern Part and Gateway to Cambodia Service Center for Middle North- Eastern Part and Gateway to Middle Vietnam Service Center for Middle North- Eastern Part and Gateway to Lower Vietnam Service Center for Lower Northern Part and Central Part Service Center for Middle North- Eastern Part and Gateway to GMS Service Center for Upper North- Eastern Part and Gateway to GMS Service Center for Middle North- Eastern Part and Gateway to Lao PDR., Upper Vietnam and Lower China Service Center for Lower North- Eastern Part Service Center for Industries and Exportation Service Center and Gateway to Myanmar Service Center for Southern Part and Gateway to Malaysia

20. Service Center A Service Center B Service Center C Service Center D SME OSMEP Trade and Investment Information SME Needs Diagram on how data and information be transferred and collected Access to Information and Advisory Services for SMEs

21. Example center in network: Khon Kaen University has joined into the network since 2010, it had been considered as the first service center in our system. Not only the university has the science park, which provide: Workshop Advisory services Lab testing Technologies and tools for incubating and supporting SMEs, but also well-known as a business information hub in the northeast region of Thailand and for the neighbor ASEAN member states in the Great Mekong Sub-region; GMS Access to Information and Advisory Services SME Service Center Network (Thailand)

22. Khon Kaen University Science Park offers businesses’ technology leverage in One-Stop Service The specialist consultant services; seeking technology from domestic and foreign, matching technology and business negotiations, R&D searching service, and establishing a linkage to other related services such as low interest loans, the business incubation, intellectual property services, venture capital matching, etc. SPKKU provides technology consulting services and data of research and development, Including, integrate innovations of Both the Ministry of Science and Technology and the university/academia. Business incubation services Provide services to support individuals from start-up to SME size by promote the innovation and technology adoption in products and services to enhance production in the supply chain and develop products or processes with confident Increasing and trust in the businesses. Service Details are as follows. - Find information and business networking - Business consulting services - Training to enhance skills for entrepreneurs - Export promotion - Promotion and marketing support services Example: Khon Kaen University Potential: Access to Information and Advisory Services SME Service Center Network (Thailand)

23. Service in intellectual property protection. Provide intellectual property service (IP Service) for various types of intellectual property protection and licensing of technology (Technology Licensing) to lead to private sector investment. financial support Provide expert advice and financial benefit information of credit and low interest loans to SME in order to invest in R & D Metrological service coordination between public and private Be a coordination center of metrology between public and private sectors by organizing training and seminars on metrology operations. Moreover, there is cooperation with National Institute of Metrology to support the calibration services for instrumentation in various fields and development services in other related areas in order to serve the needs of industries in the Northeastern. Expertise services Provide a expertise in the business incubation and research in various subject areas to support and encourage a steadily business growth. Laboratory Service Center Provide a service examination, calibration, training, and advice in various fields with experienced scientists. Service in research and development partnership/ research and development Be a partnership between public, private, and universities in research and serve government agencies that conducts research and development needs of the private sector. Example: Khon Kaen University Potential: Access to Information and Advisory Services SME Service Center Network (Thailand)

24. Testing Labs Seminar & Workshop Business Consulting Online Information and Database